Armey: Individual Mandate Would Be a Healthcare Industry Boondoggle

Do we really want to send billions more to the health insurance industry?

September 28, 2009 RSS Feed Print
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Instead of forcing unnecessarily expensive insurance on us, why not simply let us purchase cheaper insurance across state lines? It costs the taxpayers nothing, immediately increases insurance competition, broadens choice, and, by making cheaper options available, would lower the number of uninsured.

Doesn't this sound more like what we've been promised?

Unfortunately, the rhetoric does not line up with the legislative reality. Rather than choice, we get force. Rather than lower costs through price transparency and patient power, we get taxpayer subsidies to pay for higher costs. Rather than examining how the 20 states without high-risk pools for pre-existing conditions could learn from the 30 with them, we get more federal bureaucracy. Rather than reforming problems like the tax bias that pushes employer-centered insurance that we can't take from job to job, we get a plan that reinforces that failing system with 46 million more customers.

And the "individual mandate" may be the furthest divergence from the rhetoric.

Exactly how does forcing us to buy only health insurance approved by the federal government reflect more choice—and how does this belong in a free society?

Read why catastrophic coverage should be mandatory, by William H. Frist, Tennessee Republican, heart surgeon and the former U.S. Senate majority leader.

What do you think? Should Health Insurance Be Required of Everyone?

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Re: "In one presidential debate, he said, 'Senator Clinton believes the only way to achieve universal healthcare is to force everybody to purchase it. And my belief is, the reason that people don't have it is not because they don't want it but because they can't afford it.'"

The idea behind individual mandates is that it spreads the risk around (since now ALL of the healthiest, who might otherwise forego coverage or just get a lower premium "catastrophic" plan, such as a high-deductible health plan), are also paying into the system), and it also avoids the free-rider problem (those who can afford insurance, but who forego it and just utilize the ER if ever necessary). There's a point to be made about the free-rider issue, but currently, insurers are getting away with...well...never mind. They operate like a giant premium black hole in that money for coverage gets sucked in, and who knows if it'll ever get paid out in a timely manner when/if there's a claim filed.

Insurers can literally deny a claim for an number of reasons, including pending the claim for something just nitpicky and not entirely necessary. Or, as anyone who's ever worked in claims knows, the claims are lost somewhere in a vast system until someone, who's job it is to push the claim forward, gets on the phone with a supervisor to get it processed and paid already.

Some claims even end up in court, where lawyers for the insurer and the actual provider (the hospital) hash out contractual issues.

If there's an individual mandate required at some point, can Americans "pend" their premium payments to the insurers for a ridiculous amount of time?

Doubt it. That would never be acceptable, would it?

Angie Koutrotsios of IL 6:21PM October 12, 2009

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